Christmas rainstorms across Argentina further delayed soy and corn planting, keeping markets guessing about whether the grains powerhouse can produce enough this season to help bring high-flying global food prices down to earth.

Wheat harvesting has also been delayed and the crop estimate was lowered 5% by the government

Argentina is the world's No. 2 corn exporter after the United States and its No. 1 soy-oil and soy-meal supplier. But sowing in the central Pampas farm belt lags last season's tempo by about 20 percentage points, said Tomas Parenti, an agronomist with the Rosario grains exchange.

Up to 100 millimetres of rain fell late on Monday and early Tuesday (Christmas Eve and Christmas Day), forcing some growers once again to park their seeding machines lest they sink in the mud.

Any more harsh rains at this point -following an unusual August-October wet spell that turned prime Argentine farmland into soggy soil, will add to the problem, Parenti said.

There is excessive moisture in low-lying areas throughout the central farm belt, Parenti said, referring to an area including parts of Buenos Aires, Santa Fe and Cordoba provinces.

Fields located in the same area but at higher elevation are in good shape. We're not expecting a lot of rain over the week ahead but if we get any surprises, anything over 40 or 50 millimetres, it will worsen the problem, he added.

Argentina's main grains port of Rosario situated along the Parana River and offering access to the shipping lanes of the South Atlantic, has received almost twice its normal rainfall this year.

Soggy conditions on the Pampas are bad news for consumer nations looking to Argentina for the supply needed to soften food prices squeezed higher this year by dry crop weather in breadbaskets Russia, the United States and Australia. Benchmark Chicago soy futures are up 20% over the last 12 months, with corn up 9% and wheat 22%.

Global food markets face further volatility in 2013 as stocks and supply of key cereals have tightened, the United Nations food agency said this month.

The rains have also slowed 2012/13 wheat harvesting. The Argentine Agriculture Ministry cut its estimate for 2012/13 wheat production by 5% to 10.5 million tons, which is still higher than leading private forecasts but reflects damage caused by the wet weather.

The Buenos Aires Grains Exchange expects farmers to harvest 9.8 million tons of wheat, while the Rosario exchange sees the crop coming in at 9.5 million tons. Rosario sees 53 million tons of soybeans produced this season and 24 million tons of corn. The Buenos Aires exchange has not yet issued 2012/13 corn and soy projections.

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A family member has a friend living in the USA. He told me this friend commented that he was shopping before Christmas and he heard a balloon pop... and people started running in PANIC!!! Apparently this happens now all the time across the USA, especially in malls, schools, universities, and movie theaters... even the most silly sound (like someone dropping a wood plank), sets off mass histeria.

Unless you have another family member who has a friend living in Argentina and they have told you that every time someone hears a balloon pop there people start running in PANIC and get covered in mud.

Yes....of course what a horrible place to live....words from the person who has never been there or anywhere out of Argentina and of course an absolutely a meaningless contribution of a post as usual.
Why do you not add something to the fact that Argentina is now becoming an agrarian nation in order to finance it's infrastructure and how this weather will impact Argentina's means to acquire U$ that is so desperately needs, demonstrated by it's the outlawing possession of greenbacks? Or how the combination of this weather and the farmers strike for retaliatory expropriation will effect Argentina? Maybe your intellectually cunning use of words can tell us how Argentina has found a new method of sowing seeds in mud? Come on nostril, get that thesaurus moving.
I think I speak for every poster here that we all are waiting with bated breath for the great NOSTRIL to hurl a new volley of insults and of course the self praise of one's own intellect that always follows. Truly titti boi.....we are all waiting......don't fail us or deprive us all of another laugh on the great nostralldamus. We all look forward to your meaningless and laughable posts.....please, I know I can hardly wait. Please tell us....we waiting....at least I am waiting for my insult of diversion.

As I have told shed time and always told you, you need to be there to form a real, meaningful opinion. Your's is far from based on the reality of the people or what ACTUALLY goes on in Argentina. You experinced nothing, you know no one and the now know nothing but what you read. On top of that you are so blinded for you errection of CFK, that in you eyes she is perfect. As I said before, they failure of the people to hold a critical eye to their leaders was how hitler and the third reich started.

I love reading as many bloggers Islanders (probably all people do) want deep inside the wreck of the Argentina. We say we are clumsy, barbaric and backward .. certainly are. But you harbor the worst feelings are all RESENTFUL! Dan penalty ..

@13 XAVIERV,
If Argentina wasn't so belligerent, we could accept them into the family of nations.
lt is precisely Argentina's attitude that cause us to wish ill for the country.
For myself, l would rejoice to see Argentina break up into many smaller nations.
You bring it all upon yourselves without any outside help.
Don't you wish that Argentina was as prosperous & respected as it was in 1900?
Ask yourself,what happened? why
lts all in your people's hands.

It gives me goosebumps BK, to see you quote an American Presidential speech dedicating a battlefield. A Republican no doubt.....lol

#14 Unfortunately for the moderate mind Argentine's, they are somewhat behind the 8 ball. Peronism has infected Argentina like a cancer. Also I am not so convinced as many Argentine's that the democracy there is on the up and up.